Kerala is moving to legalize agricultural land leasing through a new bill, designed to stimulate the agricultural sector. The bill will facilitate the use of vacant land and support agricultural startups. It will provide farmers with access to crucial financial services, like bank loans and crop insurance. Moreover, the bill promotes the adoption of modern farming practices, including increased mechanization.
The proposed legislation is closely aligned with the Andhra Pradesh Tenant Farmers Rights Act, which was enacted in 2019. This bill seeks to formalize lease farming, a system that permits landowners to lease their land to others for cultivation in exchange for payment.
The initiative responds to the fact that many residents have left their lands fallow due to inability to farm or for elderly farmers who find it difficult to continue. The bill aims to make it easier for them to lease their land while retaining ownership. The state has a large amount of unused land, including both permanently fallow and temporarily uncultivated plots.